Gores Group Buys National Envelope’s Assets and Some Liabilities Via Section 363 Deal

The Gores Group LLC acquired substantially all of the assets and assumed certain liabilities from National Envelope Corp. through a Section 363 transaction under of the U.S. Bankruptcy Code. The acquired Frisco, Texas-based company makes 37 billion envelopes each year. The bankruptcy court approved the transaction on Aug. 23.


The Gores Group, LLC (together with its affiliates, “Gores”) today announced that it has acquired substantially all of the assets and assumed certain liabilities from National Envelope Corporation (“NEC”), through a transaction under Section 363 of the U.S. Bankruptcy Code. The U.S. Bankruptcy Court for the District of Delaware approved the transaction on August 23, 2010.

National Envelope Corporation was founded in 1952 and is the largest envelope producer in the United States, manufacturing 37 billion envelopes annually. Based in Frisco, Texas, NEC is an official envelope converter for every major North American paper mill in the $3.7 billion North American envelope industry, generating revenues of approximately $600 million.

“NEC is the market leader in the merchant/wholesale channel, with meaningful growth opportunities in the attractive consumer market. Leveraging a national manufacturing presence and unparalleled supplier and customer relationships, NEC will serve as an attractive platform for future growth, both in the envelope industry and across other relevant adjacencies,” said Jordan W. Katz, Managing Director of The Gores Group.

“We are very happy to be partnering with The Gores Group. The Gores Group has a solid reputation for working closely with the companies it acquires to achieve full operational potential. We look forward to working with them to accelerate our performance over time,” stated Shelby Marlow, NEC’s Chief Financial Officer. “We are emerging a well-capitalized company that remains committed to serving our customers with the highest level of quality, service and professionalism.”

Mr. Marlow added, “We continue to thank each of our employees, customers and suppliers for their support, loyalty and cooperation during the restructuring process. We are very optimistic about the long-term potential for NEC and the envelope industry.”

About The Gores Group, LLC

The Gores Group, LLC is a private equity firm with $2.9 billion of capital under management that is focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm’s operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, LLC, which was founded in 1987 by Alec E. Gores, has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. Headquartered in Los Angeles, The Gores Group, LLC maintains offices in Boulder, CO, and London. For more information, please visit www.gores.com.

About National Envelope Corporation

National Envelope Corporation is the largest manufacturer of envelopes in the world with 14 manufacturing facilities and 2 distribution centers and more than 3000 employees in the U.S. and Canada. The company is an environmental leader in the paper and envelope converting industries with certifications from the Forest Stewardship Council (FSC), Rainforest Alliance, Sustainable Forestry Initiative (SFI), Programme for the Endorsement of Forest Certification (PEFC), Chlorine Free Products Association, and Green Seal. For more information on National Envelope please visit www.nationalenvelope.com.